Student Loan News, Updates and Blog Posts

Debt relief could be on the horizon for recent law school graduates. The American Bar Association has proposed extending debt relief to law school graduates who have not been able to find a job because of the recession. While most unemployed graduates can already defer their federal loans or qualify for income based repayment, the ABA’s proposition suggests letting graduates convert their private loans into federal loans so that they can receive the same benefits.

Many law school students graduate with $50,000 to $100,000 worth of debt. Most of this debt comes from a combination of federal and private loans. Private loans can rarely be deferred because of unemployment or economic hardship like federal loans can. The ABA is proposing allowing students to borrow additional money from the government to pay off their private loans. This would leave them with an additional federal loan that they could defer for up to three years or roll into their income based repayment plan.

This plan is in infancy stages and no one knows exactly how it would be accomplished. However, if passed it would definitely be a huge help to many law school graduates who might otherwise default on their private loans and hurt their credit forever.

For many students obtaining a private student loan can be difficult. Private student loans always sound fantastic because you can apply for them at any time during your college career and they can help you pay for books and housing. However, contrary to popular belief,  these loans do not just fall into the lap of every student who cries poor.

One of the major advantages of a private student loan is that they are not need based, but this comes with a trade-off. Private student loans are based on credit and if you have a bad credit history or no credit history your chances of obtaining a loan are slim. Even if you have a cosigner with a strong credit history your credit score will still be checked during the application process and could affect whether or not you get a loan.

You might be surprised to hear that the solution to this problem is a credit card. Credit cards often carry a bad reputation, but the truth is that when they are used responsibly they can help your credit score soar. My advice is to apply for a card with a low limit, use the card for a few purchases every week, and pay off the balance every month. This method with help you build your credit history and show prospective lenders you are financially responsible.

If the need for a private student loan might be in your future I encourage you to consider building your credit with a credit card. StudentPlatinum.com can help you figure out which credit card would be good for you. There are cards for people in all kinds of financial situations. Even if you already have poor credit you can apply for a card and start turning things around.

So you are a senior and college and you have decided that you are definitely going to go to grad school next year. The job market is tough and you figure with a little bit more education you can get into your field of choice and increase your earning potential. You know that between the Graduate Stafford loan, Graduate PlUS loan and alternative student loans you will be able to pay for tuition, books and any other living expenses. Now comes the hard part; deciding which school and program to enroll in.

The first decision you need to make is whether you want to pursue a traditional graduate degree or an online degree. If an online degree is something the piques your interest Edvisors.com can help you learn more about this possibility and connect you with the best online schools and programs. If you decide to go the more traditional route GraduateCenter.com can help you explore your options and search for the perfect school.

Another great resource is the school you are attending now for your undergraduate degree. Many schools host graduate school fairs or graduate school information sessions. Your school’s career services office can also help you greatly in your decision.

Choosing a graduate school program is an extremely important decision and it should not be taken lightly. When making your decision you should consider the cost of attendance, cost of living, length of the program, whether or not you will be able to work while you are in school, and admission requirements. Remember that this decision will greatly impact your future career so make sure you choose a program you are going to enjoy.

One of the biggest shows for college students this fall is the new Melrose Place series. On the show actress Stephanie Jacobsen plays Lauren Yung, a medical student who is forced to come up with some unconventional ways to pay her tuition. Early in the season Yung finds out that her father has lost his job and will no longer be able to help her pay for school. To start making money quickly, Yung becomes a high-end call girl. She finds out that spending time with wealthy men is an extremely lucrative business and an easy way to pay off her medical school debt.

In my opinion, this plot line sends a horrible message to the show’s key demographic of young college women.  I have to admit that I do watch the show but I always find myself wanting to scream “student loans” and “scholarships” every time the story turns to Yung’s problems. Most college students are familiar with the hardships of making college payments; however there are ways to quickly get tuition money that are far less humiliating.  Private Student Loans are a simple, flexible way to get the exact amount of money that you need when you need it. Since circumstances can change quickly, private student loans can be borrowed at any time during the semester. As long as you and your co-signer have a healthy credit score you should be able to borrow up to the true cost of your education. The best part is that you can use private loan money for more than just tuition. The Student Loan Network can connect you with private lenders and even help you apply.

If you are frustrated with your financial situation know that there are plenty of resources out there can help you pay for your education. Do not put yourself in danger or disrespect yourself to make money quickly.  If you are just starting to explore your financial options visit the Student Loan Network for information on federal student loans, private student loans and scholarships. Finally, will someone please tell Miss Yung the same thing!

If you are a parent of a prospective college student, or a prospective college student yourself, you should be starting to think about financial aid. You have probably heard people around you talking about FAFSA, Stafford loans, Pell Grants, scholarships, and alternative student loans. It might seem like you are the only one who does not know what is going on, but trust me you are not alone in your confusion. Applying for financial aid can be very stressful for families and filing the FAFSA is a task that most people dread.

In order to be eligible for any kind of Federal student loans or grants you must file the FAFSA. Many people play down the importance of the FAFSA, but it should not be taken lightly.  Mistakes on this form can end up costing you thousands of dollars in aid. Luckily there are people out there who know a lot about financial aid and might even be able to help you with the application process.

Many high schools and communities host financial aid and FAFSA workshops. These are usually free sessions run by the high school guidance department, a local college or outside consulting group. These workshops usually go over a general look at financial aid, applying for student aid, why you should file the FAFSA, determining financial need, and tips and techniques for filling out the FAFSA.

If you are perplexed by the financial aid process make sure you find out if your town is holding a workshop. If they are not planning one it may be beneficial to suggest it to the high school principal or guidance department. The U.S. department of education even provides resources and presentation materials that make hosting a financial aid night more manageable. After attending a financial aid or FAFSA session you will probably find out that you are not the only one who feels lost, but you will also probably feel more confident and ready to tackle the application process.

If you are like me you probably graduated from college with two things; a diploma and a pile of debt. It is completely normal for students to have federal student loans and private student loans to pay off after college, but on top of credit card payments, rent and insurance payments these loans can be a huge burden. There are ways to quickly pay down your debt without getting overwhelmed. Here is the method that I use:

1: Figure out your monthly income and expenses including any student loan and credit card bills.  This will allow you to see how much money you have left over after the bare minimum is paid.

2: Pay at least the minimum payment on all of your debts each month. Missing any payment can negatively affect your credit score. A poor credit score will makes it hard to rent an apartment, buy a car and take out any kind of loan in the future. Additionally, if you put off making payments you will end up getting slammed with interest in the long run.

3: Without neglecting any other living expenses and a modest savings plan, use any extra money to pay off whichever debt has the highest interest rate.  If you have a lot of credit card debt it is probably best to pay that down first. Once your credit card debt is paid off, try not to accumulate any additional debt. Once your first debt is paid you can move on to using your extra money to pay off whichever student loan has the highest interest rate and so on until you are debt free.

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